Final answer:
Category management is influenced by technological growth and globalization, which increase market competition by connecting consumers and businesses globally. The market structure and production costs also play a crucial role, along with shifts in demand curves due to various market forces.
Step-by-step explanation:
The factors driving the varying degrees of category management include technological advancements and globalization. The integration of these factors has redefined markets by expanding competition due to improvements in communication technologies, notably the internet. This has allowed consumers and businesses to engage in transactions on a global scale. Consequently, local retail businesses now face increased competition, as customers have a wider array of suppliers from which to choose, and businesses can source products from around the world through business-to-business websites.
Another significant factor influencing category management is the market structure, which depends on how competitive the industry is. The degree of competition in turn depends on production and cost conditions different firms face. For example, shifts in demand curves in markets for goods and services can cause variations in category management strategies. These shifts can be due to changes in consumer preferences, price changes for other goods, or alterations in buyers' income, among other factors.